New Delhi, India / RankWire.AI / – The Union Cabinet, headed by Prime Minister Narendra Modi, approved a pioneering national project on Friday aimed at accelerating hydrocarbon discoveries in Indian ocean basins. The government confirmed through the Press Information Bureau that the scheme, named the Samudra Manthan program, involves an expenditure of Rs 84,084 crore for offshore oil and gas exploration. Managed by the Ministry of Petroleum and Natural Gas, the initiative will be implemented through the 2020-21 to 2030-31 fiscal years. It is designed to intensify deepwater exploration, strengthen energy security, and unlock previously untapped oil and natural gas resources within India’s exclusive economic zone.
The scheme’s financial plan distributes funds across four key pillars to overhaul upstream petroleum activities. As per official statements from the Prime Minister’s Office, Rs 28,534 crore is designated for offshore seismic data collection, processing, and high-resolution analysis, including Rs 12,000 crore for basin-wide two-dimensional seismic surveys, Rs 12,534 crore for three-dimensional seismic mapping, and Rs 4,000 crore to modernize the National Data Repository with artificial intelligence tools. This targeted allocation aims to produce detailed imaging of unexplored frontier basins and previously restricted maritime zones along India’s eastern and western coasts.
A substantial portion of the budget—Rs 55,200 crore—is allocated for direct exploration activities and infrastructure development. Of this, Rs 43,200 crore supports drilling 60 deepwater and ultra-deepwater wells across selected offshore blocks. Under a risk-sharing model, the government will cover up to 50 percent of eligible drilling costs, with a cap of Rs 675 crore per well. An additional Rs 10,000 crore will fund offshore production infrastructure and evacuation systems, while Rs 2,000 crore is assigned for establishing specialized manufacturing zones for petroleum equipment and technical services.
Cabinet Approves Rs 84,084 Crore Investment in Offshore Hydrocarbon Exploration
Official projections indicate that the Rs 84,084 crore scheme will lead to significant reserve growth over the next decade. The government expects to add more than 600 million metric tonnes of oil equivalent in hydrocarbon reserves through focused exploration efforts. The project also aims to increase domestic oil and gas output from 62 million metric tonnes of oil equivalent to 80 million metric tonnes, expanding the resource base from 1.6 billion to 2.2 billion tonnes of oil equivalent. This boost in local energy production is projected to reduce crude oil imports by roughly Rs 1 lakh crore each year.
Union Minister Ashwini Vaishnaw stated during a press briefing in New Delhi that the program directly addresses serious geopolitical risks impacting global crude oil supplies. With India’s crude import dependency expected to reach 88.7 percent in FY 2025-2026, the Samudra Manthan scheme is a strategic move toward energy independence. High-risk deepwater drilling in areas like Krishna-Godavari, Cauvery, Mahanadi, and the Andaman offshore region involves investments of between 100 million and 250 million dollars per well. The government’s risk-sharing plan is intended to encourage private and public sector upstream operators to make long-term investments in these challenging marine formations.
Incentives for Deepwater Drilling Reach Up to 675 Crore per Well
A key component of the scheme involves shared offshore infrastructure development to make smaller hydrocarbon finds more economically feasible. By creating common processing platforms, subsea pipelines, and evacuation facilities, the Ministry of Petroleum and Natural Gas aims to lower costs for commercial field development. The scheme allocates Rs 350 crore for digital management, monitoring, workforce training, and international technical collaborations. These efforts are designed to foster a robust offshore industry capable of supporting advanced marine engineering, robotics, and deepwater production technologies, as outlined in the linked article.
Building on over ten years of upstream policy reforms—including open acreage licensing and unified contracts—the Samudra Manthan initiative extends financial support through 2031. Its goals include promoting industrial partnerships, creating high-skilled jobs, and boosting local manufacturing under the Make in India program. As offshore surveys and drilling projects advance, this comprehensive scheme aims to reduce reliance on imports, bolster economic resilience, and achieve long-term energy security for India.